(1) The object of this section is to adjust the discount percentage so as to deny a trustee a discount for a * capital gain for which the trustee is liable:
(a) to be assessed; and
(b) to pay tax;
under section 98 of the Income Tax Assessment Act 1936 in relation to the trust estate in respect of a beneficiary to the extent that the beneficiary was a foreign resident or * temporary resident.
(2) This section applies to a * discount capital gain of a trust estate if:
(a) you are the trustee of that trust; and
(b) section 115- 220 applies to you in relation to the discount capital gain and a beneficiary of the trust who is an individual.
(3) The percentage resulting from this section is the same as the * discount percentage for the corresponding * discount capital gain the beneficiary would have made for the purposes of Division 102 had section 115- 215 applied to the beneficiary.